Reports
Discussion Papers
No.328 Inflation Targeting in Korea, Indonesia, Thailand, and the Philippines: The Impact on Business Cycle Synchronization between Each Country and the World
by INOUE Takeshi, TOYOSHIMA Yuki, and HAMORI Shigeyuki
March 2012
ABSTRACT
This
paper
is
an
overview
of
the
results
from
a
questionnaire
survey
and
subsequent
supplementary
interviews
of
Iran’s
large
apparel
firms
This
paper
empirically
analyzes
whether
and
to
what
extent
the
adoption
of
inflation
targeting
(IT)
in
Korea,
Indonesia,
Thailand
and
the
Philippines
has
affected
their
business
cycle
synchronization
with
the
rest
of
the
world.
By
employing
the
dynamic
conditional
correlation
(DCC)
model
developed
by
Engle
(2002),
we
find
that
IT
in
Asia
has
little
effect
on
international
business
cycle
synchronization
and
the
effect
is
positive
in
some
of
the
countries,
if
any.
These
findings
basically
seem
to
be
consistent
with
the
evidence
from
relevant
literature.
Keywords:
Asia,
business
cycle
synchronization,
DCC,
inflation
targeting
JEL
classification:
E52,
E58,
F42
Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.